Investing.com - Canada’s main stock market closed higher on Friday, bouncing up at the end of a week marked by turmoil and uncertainty over Ottawa’s trade relations with the United States.

On the day, the S&P/TSX 60 index had risen by 21.6 points or 1.5%.

The Toronto Stock Exchange ’s S&P/TSX composite index also advanced up 350 points or 1.45%, after sinking in Thursday’s session by 0.9% to 24,203.23, its lowest closing level since October 31, shortly before the U.S. presidential election.

As it was on Wall Street, sentiment was dented by fresh tariff threats from U.S. President Donald Trump. The president floated slapping a steep 200% tariff on European goods in response to retaliatory tariffs from the European Union on a range of U.S. goods, including whiskey and Harley-Davidson (NYSE: HOG ) motorcycles.

Economists have warned that Trump’s actions, which have included placing now-delayed import tariffs on Canada, could drive up inflation and weigh on growth in the U.S. and around the world.

In Canada, former central banker Mark Carney was sworn-in Friday, replacing long-serving leader Justin Trudeau. Carney handily won support from the ruling Liberal Party last Sunday, and announced a new cabinet today.

Carney has warned that Trump’s tariffs could damage Canadian workers, consumers and businesses, but he said he would not speak with Trump until he formally assumes the leadership.

U.S. stocks rise

U.S. stock indexes also closed higher following a slip in the bellwether S&P 500 index down to correction territory on concerns over an escalating trade war and potential recession.

By 4:00 ET, Dow Jones Industrial Average finished the day up 674 points, or 1.65% higher. The S&P 500 rose 117 points, or 2.1%, and the NASDAQ Composite gained 451 points, or 2.6%.

The S&P 500 closed 1.4% lower on Thursday, entering correction territory, which is typically defined as a 10% fall from a recent peak.

Additionally, in yesterday’s trading, the Dow Jones Industrial Average fell 1.3%, and the Nasdaq Composite dropped 2%.

The Dow is on track for its second straight losing week and worst weekly decline since June 2022. This would be the fourth negative week in a row for the S&P 500 and Nasdaq .

Crude gains on Iran sanctions, Ukraine ceasefire doubts

Oil prices rose Friday after U.S. President Donald Trump tightened sanctions on Iranian oil and shipping, although traders were still nervous about oversupply concerns, the Russia-Ukraine ceasefire talks and escalating trade tensions.

By 4:30 ET, Brent futures rose 1% to $70.56 a barrel, while U.S. West Texas Intermediate crude futures rose 1% to $67.20 per barrel.

On Friday, the Trump administration announced that it has intensified its "maximum pressure" campaign against Iran by imposing sanctions on Iranian Oil Minister Mohsen Paknejad and targeting entities and vessels associated with Iran’s "shadow fleet," which is used to circumvent existing sanctions.

Putin said on Thursday that while Russia supported the plan in principle, more clarifications and conditions on a range of points had to be sorted out before the fighting could come to a halt.

Gold hovers near record high

Gold prices were hovering around an all-time high in trading on Friday, supported by ongoing safe-haven demand fueled by Trump’s near-constant tariff announcements.

Spot gold had slightly fallen, down 0.07% at 4:30 ET, after reaching a fresh record high of $2,993.90 earlier in the session. Gold Futures expiring in April gained 0.1% to $2994.79 an ounce.

Prices for bullion surged to a record peak in the previous session, and were set to gain 2.5% this week.

(Scott Kanowsky also contributed to this article)